This program has now been folded into NAB’s broader remediation program, which includes targeting subsidiaries including JBWere Limited, Wealthhub Securities Limited, Medfin Australia Pty Ltd, and AFSH Nominees Pty Ltd.

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NAB chief executive Ross McEwan said the bank takes its anti-money laundering obligations “very seriously”.

“We acknowledge the concerns that led to AUSTRAC’s investigation. We will continue to work closely with AUSTRAC as we deliver the agreed further actions.

”We recognise it has taken us longer to fix the concerns raised than it should have. We welcome AUSTRAC’s acknowledgment that NAB has undertaken significant work to date - and we accept that there is more to do.“

McEwan said it was essential that all staff within the bank focused on “getting the basics right”. “Keeping criminals out of the financial system is a top priority for NAB. We recognise our opportunity to better detect, deter and disrupt the flow of illegal money at a time when the threat is evolving at an incredible rate.”

NAB said many of the activities required under the remediation plan, including the remediation of high-risk customers, is expected to be completed within the next 12 months. Other activities required “more time and resources”, the bank said.

CBA and Westpac have been fined a combined $2 billion in recent years following AUSTRAC investigations that revealed systemic non-compliance with anti-money laundering laws. AUSTRAC conducted a report last year that found the overall money laundering and terrorism financing risk for the banking industry remains ‘high’.

Jefferies senior analyst Brian Johnson said the AUSTRAC announcement was good news for shareholders, after the regulator confirmed a financial penalty would not be issued to NAB.

“It’s an unambiguous positive only because it’s not negative. There will be costs involved, but presumably they’ve thought about those and disclosed them in previous guidance.”